Fast, Simple, Local Business Search. Find the Best Local Payday Loan Business in Houston

JustLocalBusiness.com

If you're thinking "I need to call a Local Payday Loan Service Near Me" in Houston, TX then you're in luck. JustLocalBusiness.com Simple Business Search provides the most up to date business listings, phone numbers and information about Plumber services, contractors and companies in Houston, TX.

financepoint of interestestablishment

Speedy Cash

10884 W Bellfort Blvd, Houston

financepoint of interestestablishment

Advance America

12637 Westheimer Rd Ste. 200, Houston

financepoint of interestestablishment

EZ Money Payday

9560 Kempwood Dr, Houston

financepoint of interestestablishment

Texas Car Title & Payday Loan Services, Inc.

12240 Murphy Rd Ste Q, Stafford

financepoint of interestestablishment

More About Payday Loan Services from Wikipedia

A payday loan (also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) is a small, short-term unsecured debt, "regardless of whether repayment of loans is linked to a borrower's payday." The loans are also sometimes referred to as "cash advances," though that term can also refer to cash provided against a prearranged line of credit such as a credit card. Payday advance loans rely on the consumer having previous payroll and employment records. Legislation regarding payday loans varies widely between different countries, and in federal systems, between different states or provinces.

To prevent usury (unreasonable and excessive rates of interest), some jurisdictions limit the annual percentage rate (APR) that any lender, including payday lenders, can charge. Some jurisdictions outlaw payday lending entirely, and some have very few restrictions on payday lenders. In the United States, the rates of these loans used to be restricted in most states by the Uniform Small Loan Laws (USLL), with 36–40% APR generally the norm.

There are many different ways to calculate annual percentage rate of a loan. Depending on which method is used, the rate calculated may differ dramatically; e.g., for a $15 charge on a $100 14-day payday loan, it could be (from the borrower's perspective) anywhere from 391% to 3,733%.$15 on $100 over 14 days is ratio of 15/100 = 0.15, so this is a ''14-day rate''. Over a year (365.25 days) this ''14-day rate'' can aggregate to either 391% (assuming you carry the $100 loan for a year, and pay $15 every 14 days: 0.15 x (365.25/14) = 3.91, which converts to a percentage increase (interest rate) of: 3.91 x 100 = 391%) or 3733% (assuming you take out a new loan every 14 days that will cover your principal and "charge", and every new loan is taken at same 15% "charge" of the amount borrowed: (1 + 0.15)365.25/14 − 1 = 37.33, which converts to a percentage increase (interest rate) of: 37.33 x 100 = 3733%).

The loan process

The basic loan process involves a lender providing a short-term unsecured loan to be repaid at the borrower's next payday. Typically, some verification of employment or income is involved (via pay stubs and bank statements), although according to one source, some payday lenders do not verify income or run credit checks. Individual companies and franchising have their own underwriting criteria.

In the traditional retail model, borrowers visit a payday lending store and secure a small cash loan, with payment due in full at the borrower's next paycheck. The borrower writes a postdated check to the lender in the full amount of the loan plus fees. On the maturity date, the borrower is expected to return to the store to repay the loan in person. If the borrower does not repay the loan in person, the lender may redeem the check. If the account is short on funds to cover the check, the borrower may now face a bounced check fee from their bank in addition to the costs of the loan, and the loan may incur additional fees or an increased interest rate (or both) as a result of the failure to pay.

In the more recent innovation of online payday loans, consumers complete the loan application online (or in some instances via fax, especially where documentation is required). The funds are then transferred by wiktionary:direct deposit to the borrower's account, and the loan repayment and/or the finance charge is electronically withdrawn on the borrower's next payday.

User demographics and reasons for borrowing

According to a study by The Pew Charitable Trusts, "Most payday loan borrowers [in the United States] are white, female, and are 25 to 44 years old. However, after controlling for other characteristics, there are five groups that have higher odds of having used a payday loan: those without a four-year college degree; home renters; African Americans; those earning below $40,000 annually; and those who are separated or divorced." Most borrowers use payday loans to cover ordinary living expenses over the course of months, not unexpected emergencies over the course of weeks. The average borrower is indebted about five months of the year.[http://www.pewtrusts.org/our_work_report_detail.aspx?id=85899406010 "Payday Lending in America: Who Borrows, Where They Borrow, and Why"] Pew Charitable Trusts, July 18, 2012

This reinforces the findings of the U.S. Federal Deposit Insurance Corporation (FDIC) study from 2011 which found black and Hispanic families, recent immigrants, and single parents were more likely to use payday loans. In addition, their reasons for using these products were not as suggested by the payday industry for one time expenses, but to meet normal recurring obligations. Pew's reports have focused on how payday lending can be improved, but have not assessed whether consumers fare better with or without access to high-interest loans. Pew's demographic analysis was based on a random-digit-dialing (RDD) survey of 33,576 people, including 1,855 payday loan borrowers..

In another study, by Gregory Elliehausen, Division of Research of the Federal Reserve System and Financial Services Research Program at the George Washington University School of Business, 41% earn between $25,000 and $50,000, and 39% report incomes of $40,000 or more. 18% have an income below $25,000.Elliehausen, Gregory. (2009) "[http://www.cfsaa.com/portals/0/RelatedContent/Attachments/GWUAnalysis_01-2009.pdf An Analysis of Consumers' Use of Payday Loans]" Financial Services Research Program. p27.

Criticism

In the United Kingdom Sarah-Jayne Clifton of the Jubilee Debt Campaign said, “United Kingdom government austerity programme, low wages, and insecure work are driving people to take on high cost debt from rip-off lenders just to put food on the table. We need the government to take urgent action, not only to rein in rip-off lenders, but also to tackle the cost of living crisis and cuts to social protection that are driving people towards the loan sharks in the first place.”[https://www.theguardian.com/money/2018/apr/18/nhs-workers-top-list-of-those-applying-for-payday-loans NHS workers top list of those applying for payday loans] ''The Guardian''

Draining money from low-income communities

The likelihood that a family will use a payday loan increases if they are unbanked or underbanked, or lack access to a traditional deposit bank account. In an American context the families who will use a payday loan are disproportionately either of black or Hispanic descent, recent immigrants, and/or under-educated. These individuals are least able to secure normal, lower-interest-rate forms of credit. Since payday lending operations charge higher interest-rates than traditional banks, they have the effect of depleting the assets of low-income communities.[http://www.haworthpress.com/store/ArticleAbstract.asp?sid=DKE104GA332D9N1E7AWC8R1ANDK61RV6&ID=39238 HaworthPress.com]: Howard Jacob Karger, "Scamming the Poor: The Modern Fringe Economy", ''The Social Policy Journal'', pp. 39–54, 2004. The Insight Center, a consumer advocacy group, reported in 2013 that payday lending cost U.S communities $774 million a year.

Advertising practices

In May 2008, the debt charity Credit Action made a complaint to the United KingdomOffice of Fair Trading (OFT) that payday lenders were placing advertising which violated advertising regulations on the social network website Facebook. The main complaint was that the Annual percentage rate was either not displayed at all or not displayed prominently enough, which is clearly required by UK advertising standards.[http://www.creditaction.org.uk/policy-research/latest-news/credit-action-campaigns-on-facebook-debt-ads.html Credit Action Campaigns on Facebook Debt Ads]. Retrieved 2012-11-21.

In 2016, Google announced that it would ban all ads for payday loans from its systems, defined as loans requiring repayment within 60 days or (in the US) having an APR of 36% or more.

Unauthorized clone firms

In August 2015, the Financial Conduct Authority (FCA) of the United Kingdom has announced that there have been an increase of unauthorized firms, also known as 'clone firms', using the name of other genuine companies to offer payday loan services. Therefore, acting as a clone of the original company, such as the case of Payday Loans Now. The FCA strongly advised to verify financial firms by using the Financial Services Register, prior to participating in any sort of monetary engagement.

Aggressive collection practices

In US law, a payday lender can use only the same industry standard debt collection practices used to collect other debts, specifically standards listed under the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from using abusive, unfair, and deceptive practices to collect from debtors. Such practices include calling before 8 o'clock in the morning or after 9 o'clock at night, or calling debtors at work.

In many cases, borrowers write a post-dated check (check with a future date) to the lender; if the borrowers don't have enough money in their account by the check's date, their check will bounce. In Texas, payday lenders are prohibited from suing a borrower for theft if the check is post-dated. One payday lender in the state instead gets their customers to write checks dated for the day the loan is given. Customers borrow money because they don't have any, so the lender accepts the check knowing that it would bounce on the check's date. If the borrower fails to pay on the due date, the lender sues the borrower for writing a hot check. This practice is illegal in many jurisdictions and has been denounced by the Community Financial Services Association of America, the industry's trade association.

Pricing structure of payday loans

The payday lending industry argues that conventional interest rates for lower dollar amounts and shorter terms would not be profitable. For example, a $100 one-week loan, at a 20% APR (compound interest weekly) would generate only 38 cents of interest, which would fail to match loan processing costs. Research shows that, on average, payday loan prices moved upward, and that such moves were "consistent with implicit collusion facilitated by price focal points".[http://www.kansascityfed.org/PUBLICAT/RESWKPAP/PDF/rwp09-07.pdf Federal Reserve Bank of Kansas City, ''Payday Loan Pricing'', February 2009]

Consumer advocates and other experts argue, however, that payday loans appear to exist in a classic market failure. In a perfect market of competing sellers and buyers seeking to trade in a rational manner, pricing fluctuates based on the capacity of the market. Payday lenders have no incentive to price their loans competitively since loans are not capable of being patented. Thus, if a lender chooses to innovate and reduce cost to borrowers in order to secure a larger share of the market the competing lenders will instantly do the same, negating the effect. For this reason, among others, all lenders in the payday marketplace charge at or very near the maximum fees and rates allowed by local law.

Proponents' stance and counterarguments

Industry profitability

In a profitability analysis by ''Fordham Journal of Corporate & Financial Law'', it was determined that the average profit margin from seven publicly traded payday lending companies (including pawn shops) in the U.S. was 7.63%, and for pure payday lenders it was 3.57%. These averages are less than those of other traditional lending institutions such as credit unions and banks.

Charges are in line with costs

A study by the FDIC Center for Financial Research

Markets provide services otherwise unavailable

Proponents of minimal regulations for payday loan businesses argue that some individuals that require the use of payday loans have already exhausted other alternatives. Such consumers could potentially be forced to illegal sources if not for payday loans. Tom Lehman, an advocate of payday lending, said::"... payday lending services extend small amounts of uncollateralized credit to high-risk borrowers, and provide loans to poor households when other financial institutions will not. Throughout the past decade, this "democratization of credit" has made small loans available to mass sectors of the population, and particularly the poor, that would not have had access to credit of any kind in the past."

These arguments are countered in two ways. First, the history of borrowers turning to illegal or dangerous sources of credit seems to have little basis in fact according to Robert Mayer's 2012 "Loan Sharks, Interest-Rate Caps, and Deregulation". The report's author, Victor Stango, was on the board of the Consumer Credit Research Foundation (CCRF) until 2015, an organization funded by payday lenders, and received $18,000 in payments from CCRF in 2013.

The report was reinforced by a Federal Reserve Board (FRB) 2014 study which found that while bankruptcies did double among users of payday loans, the increase was too small to be considered significant. In 2008 the Australian states and territories referred powers of consumer credit to the Commonwealth. In 2009 the ''National Consumer Credit Protection Act 2009'' (Cth) was introduced, which initially treated payday lenders no differently from all other lenders. In 2013 Parliament tightened regulation on the payday lending further introducing the ''Consumer Credit and Corporations Legislation Amendment (Enhancements) Act 2012'' (Cth) which imposed an effective annual percentage rate cap of 48% for all consumer credit contracts (inclusive of all fees and charges). Payday lenders who provided a loan falling within the definition of a small amount credit contract (SACC), defined as a contract provided by a non authorised-deposit taking institution for less than $2,000 for a term between 16 days and 1 year, Payday lenders who provide a loan falling within the definition of a medium amount credit contract (MACC), defined as a credit contract provided by a non-deposit taking institution for between $2,000–$5,000 may charge a $400 establishment fee in addition to the statutory interest rate cap of 48%. Payday lenders are still required to comply with Responsible lending obligations applying to all creditors. Unlike other jurisdictions Australian payday lenders providing SACC or MACC products are not required to display their fees as an effective annual interest rate percentage.Bill C28 supersedes the Criminal Code of Canada for the purpose of exempting Payday loan companies from the law, if the provinces passed legislation to govern payday loans.http://laws-lois.justice.gc.ca/eng/acts/c-46/page-166.html Payday loans in Canada are governed by the individual provinces. All provinces, except Newfoundland and Labrador, have passed legislation. For example, in Ontario loans have a maximum rate of 14,299% Effective Annual Rate ("EAR")($21 per $100, over 2 weeks). As of 2017, major payday lenders have reduced the rate to $18 per $100, over 2 weeks.

UK

The Financial Conduct Authority (FCA) estimates that there are more than 50,000 credit firms that come under its widened remit, of which 200 are payday lenders. Two-thirds of borrowers have annual incomes below £25,000. There are no restrictions on the interest rates payday loan companies can charge, although they are required by law to state the effective annual percentage rate (APR). In the early 2010s there was much wonga.com#Politicians.

In 2014 several firms were reprimanded and required to pay compensation for illegal practices; Wonga.com for using letters untruthfully purporting to be from solicitors to demand payment—a formal police investigation for fraud was being considered in 2014Payday loans are legal in 27 states, and 9 others allows some form of short term storefront lending with restrictions. The remaining 14 and the District of Columbia forbid the practice. The annual percentage rate (Annual percentage rate) is also limited in some jurisdictions to prevent usury. And in some states, there are laws limiting the number of loans a borrower can take at a single time.

As for federal regulation, the Dodd–Frank Wall Street Reform and Consumer Protection Act gave the Consumer Financial Protection Bureau (CFPB) specific authority to regulate all payday lenders, regardless of size. Also, the Military Lending Act imposes a 36% rate cap on tax refund loans and certain payday and auto title loans made to active duty armed forces members and their covered dependents, and prohibits certain terms in such loans.

If the consumer owns their own vehicle, an auto title loan would be an alternative for a payday loan, as auto title loans use the equity of the vehicle as the credit instead of payment history and employment history.

Basic banking services are also often provided through their postal systems.

Comparisons payday lenders make

Payday lenders do not compare their interest rates to those of mainstream lenders. Instead, they compare their fees to the overdraft, late payment, penalty fees and other fees that will be incurred if the customer is unable to secure any credit whatsoever.

The lenders may list a different set of alternatives (with costs expressed as APRs for two-week terms, even though these alternatives do not compound their interest or have longer terms):

Income tax refund anticipation loans are not technically payday loans (because they are repayable upon receipt of the borrower's income tax refund, not at his next payday), but they have similar credit and cost characteristics. A car title loan is secured by the borrower's car, but are available only to borrowers who hold clear title (i.e., no other loans) to a vehicle. The maximum amount of the loan is some fraction of the resale value of the car. A similar credit facility seen in the UK is a ''logbook loan'' secured against a car's V5C, which the lender retains.{{cite web ing and reselling the car.

Postal banking

Many countries offer basic banking services through their postal systems. The United States Post Office Department offered such as service in the past. Called the United States Postal Savings System it was discontinued in 1967. In January 2014 the Office of the Inspector General of the United States Postal Service issued a white paper suggesting that the USPS could offer banking services, to include small dollar loans for under 30% APR.

Further reading

Baradaran, Mehrsa (2015). ''How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy.'' Harvard University Press. )

= | PLEASE BE CAUTIOUS IN ADDING MORE LINKS TO THIS ARTICLE. WIKIPEDIA | | IS NOT A COLLECTION OF LINKS NOR SHOULD IT BE USED FOR ADVERTISING. | | | | Excessive or inappropriate links WILL BE DELETED. | & Wikipedia:Spam for details. | | | | If there are already plentiful links, please propose additions or | | replacements on this article's discussion page, or submit your link | | to the relevant category at the Open Directory Project (dmoz.org) | | and link back to that category using the )

Learn more about Payday Loan Services:

Usage Terms and Privacy Policy

1. Terms

By accessing the website at https://findlocalnear.me, you are agreeing to be bound by these terms of service, all applicable laws and regulations, and agree that you are responsible for compliance with any applicable local laws. If you do not agree with any of these terms, you are prohibited from using or accessing this site. The materials contained in this website are protected by applicable copyright and trademark law.

2. Use License

Permission is granted to temporarily download one copy of the materials (information or software) on findlocalnear.me's website for personal, non-commercial transitory viewing only. This is the grant of a license, not a transfer of title, and under this license you may not:

modify or copy the materials;

use the materials for any commercial purpose, or for any public display (commercial or non-commercial);

attempt to decompile or reverse engineer any software contained on findlocalnear.me's website;

remove any copyright or other proprietary notations from the materials; or

transfer the materials to another person or "mirror" the materials on any other server.

This license shall automatically terminate if you violate any of these restrictions and may be terminated by findlocalnear.me at any time. Upon terminating your viewing of these materials or upon the termination of this license, you must destroy any downloaded materials in your possession whether in electronic or printed format.

3. Disclaimer

The materials on findlocalnear.me's website are provided on an 'as is' basis. findlocalnear.me makes no warranties, expressed or implied, and hereby disclaims and negates all other warranties including, without limitation, implied warranties or conditions of merchantability, fitness for a particular purpose, or non-infringement of intellectual property or other violation of rights.

Further, findlocalnear.me does not warrant or make any representations concerning the accuracy, likely results, or reliability of the use of the materials on its website or otherwise relating to such materials or on any sites linked to this site.

4. Limitations

In no event shall findlocalnear.me or its suppliers be liable for any damages (including, without limitation, damages for loss of data or profit, or due to business interruption) arising out of the use or inability to use the materials on findlocalnear.me's website, even if findlocalnear.me or a findlocalnear.me authorized representative has been notified orally or in writing of the possibility of such damage. Because some jurisdictions do not allow limitations on implied warranties, or limitations of liability for consequential or incidental damages, these limitations may not apply to you.

5. Accuracy of materials

The materials appearing on findlocalnear.me's website could include technical, typographical, or photographic errors. findlocalnear.me does not warrant that any of the materials on its website are accurate, complete or current. findlocalnear.me may make changes to the materials contained on its website at any time without notice. However findlocalnear.me does not make any commitment to update the materials.

6. Links

findlocalnear.me has not reviewed all of the sites linked to its website and is not responsible for the contents of any such linked site. The inclusion of any link does not imply endorsement by findlocalnear.me of the site. Use of any such linked website is at the user's own risk.

7. Modifications

findlocalnear.me may revise these terms of service for its website at any time without notice. By using this website you are agreeing to be bound by the then current version of these terms of service.

8. Governing Law

These terms and conditions are governed by and construed in accordance with the laws of Canada and you irrevocably submit to the exclusive jurisdiction of the courts in that State or location.

Privacy Policy

Your privacy is important to us.

It is findlocalnear.me's policy to respect your privacy regarding any information we may collect while operating our website. Accordingly, we have developed this privacy policy in order for you to understand how we collect, use, communicate, disclose and otherwise make use of personal information. We have outlined our privacy policy below.

We will collect personal information by lawful and fair means and, where appropriate, with the knowledge or consent of the individual concerned.

Before or at the time of collecting personal information, we will identify the purposes for which information is being collected.

We will collect and use personal information solely for fulfilling those purposes specified by us and for other ancillary purposes, unless we obtain the consent of the individual concerned or as required by law.

Personal data should be relevant to the purposes for which it is to be used, and, to the extent necessary for those purposes, should be accurate, complete, and up-to-date.

We will protect personal information by using reasonable security safeguards against loss or theft, as well as unauthorized access, disclosure, copying, use or modification.

We will make readily available to customers information about our policies and practices relating to the management of personal information.

We will only retain personal information for as long as necessary for the fulfilment of those purposes.

We are committed to conducting our business in accordance with these principles in order to ensure that the confidentiality of personal information is protected and maintained. findlocalnear.me may change this privacy policy from time to time at findlocalnear.me's sole discretion.

By using findlocalnear.me you agree to the Usage Terms and Privacy Policy.